Business
Black Iron Closes First Tranche of Private Placement with Strategic Participation
Toronto, Ontario--(Newsfile Corp. - March 29, 2019) - Black Iron Inc. (TSX: BKI) (OTC Pink: BK...
About this update from Black Iron Inc.
[{"type":"text","content":"Black Iron Closes First Tranche of Private Placement with Strategic ParticipationToronto, Ontario--(Newsfile Corp. - March 29, 2019) - Black Iron Inc. (TSX: BKI) (OTC Pink: BKIRF) (FSE: BIN) (\"Black Iron\" or the \"Company\") has closed the first (the \"First Tranche\") of two planned tranches of its previously announced non-brokered private placement financing of units of the Company (the \"Offering\"). The Company issued 17,508,440 units (the \"Units\") at a price of $0.06 per Unit for gross proceeds of $1,050,506.Certain insiders of the Company, including members of senior management and the board of directors, have subscribed for Units pursuant to the First Tranche (the \"Insider Participation\"). The Insider Participation will be considered to be a \"related party transaction\" as defined under Multilateral Instrument 61-101 (\"MI 61-101\"). The Insider Participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101. A new strategic investor also participated in this Offering that brings value well beyond the cash invested at this time. This investor has expressed an interest to potentially participate in construction financing and may also be able to assist in negotiations with other strategic parties that could make an investment to construct Black Iron's Shymanivske project.In the Offering, each Unit consists of one common share of the Company (each a \"Common Share\") and one-half of one common share purchase warrant (each whole warrant, a \"Warrant\") entitling the holder to acquire a Common Share at a price of $0.09 for a period of three years from the date hereof. In the event that the Common Shares of the Company trade at $0.15 or higher on the Toronto Stock Exchange for a period of 10 consecutive days, the Company shall have the right to accelerate the expiry date of the Warrants to the date that is 30 days after the Company issues a news release announcing that it has elected to exercise the acceleration right.The Company intends to use the net proceeds of the First Tranche to advance the Company's Shymanivske project (the \"Project\"), including negotiations to secure essential land surface rights, to further discussions and negotiations on construction financing and for general working capital purposes. Closing of the First Tranche is subject to receipt of regulator...